Feds Take Down Bitcoin Fog for Alleged Crytpo Laundering
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Feds Take Down Bitcoin Fog for Alleged Crytpo Laundering
Feds Take Down Bitcoin Fog for Alleged Crytpo Laundering: After many years of chasing the owners behind the cryptocurrency Darkweb site Bitcoin Fog, the US Government was able to nab the alleged leader of the organization in Los Angeles. Bitcoin Fog operates on the Darkweb with the purpose of cloaking the true ownership identity of the cryptocurrency owned by it members — so that the crypto can more readily be used for illicit purposes. The dark web itself is already a dangerous place — and Bitcoin Fog made it even darker. The concept behind Bitcoin Fog was that for a small transaction fee, the organization would further obsure the ownership chain of cryptocurrency so that the true owner could not be distinguished from the rest of the “fog.” It is alleged that the operations were used to facilitate a crime wave through the dark web on websites such as Silk Road — and other nefarious activities involving fraud and abuse.
Here is the Publication reproduced below:
Individual Arrested and Charged with Operating Notorious Darknet Cryptocurrency “Mixer”
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Bitcoin Fog Service Allegedly Laundered $335 Million in Cryptocurrency Since 2011
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A dual Russian-Swedish national was arrested Tuesday at Los Angeles International Airport on criminal charges related to his alleged operation of the longest-running bitcoin money laundering service on the darknet.
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According to court documents, Roman Sterlingov, 32, operated Bitcoin Fog since 2011. Bitcoin Fog was the longest-running cryptocurrency “mixer,” gaining notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement.
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Over the course of its decade-long operation, Bitcoin Fog moved over 1.2 million bitcoin – valued at approximately $335 million at the time of the transactions.
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The bulk of this cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft.
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Sterlingov is charged by complaint with money laundering, operating an unlicensed money transmitting business, and money transmission without a license in the District of Columbia.
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